The owner of the cell phone shop charges 23% more than the cost price. If a…

Step-by-Step Solution

To find the cost price when a markup percentage is applied, we follow these steps:

1. Understand the relationship:

   • The owner charges 23% more than the cost price (CP).

   • This means the Selling Price (SP) is 123% of the Cost Price.

   • SP = CP + (23% of CP) = 1.23 * CP.

2. Set up the equation:

   • Given that the customer paid Rs. 7011, the SP is 7011.

   • 7011 = 1.23 * CP

3. Solve for CP:

   • CP = 7011 / 1.23

   • CP = 5700.

The cost price of the cell phone is Rs. 5700.